Recently,BMC Software (Nasdaq: BMC) won two new deals from Amazon Web Services (AWS) and AtTask that should add to its revenue stream going forward.

The company delivered a streamlined Application Performance Management (APM) solution for AWS customers. As per the latest agreement, BMC Application Diagnostics will become available in the AWS Marketplace, in a predetermined format, capable of running on the Red Hat (NYSE: RHT) Enterprise Linux (RHEL) platform.

This application of the company has been paired with BMC's recently announced Application Performance Management as a Service (APMaaS) solution, which ultimately delivers deep insight into complex, multi-tiered application performance.

This application will provide a foundation for enterprise customers by constructing the RHEL-based applications, which are expected to run on the Amazon cloud. Following implementation, end customers will receive a pre-tested and supported solution built by BMC, which will increase the efficacy of Red Hat applications on AWS. Thus, the technology will likely reduce risk and accelerate the delivery process of the cloud-based applications.

Additionally, AtTask, a leading SaaS work management software provider, selected BMC's End User Experience Management solution to enhance user experience, maintain high quality service and gain knowledge about product improvement.

This particular solution enables the company to look into customer usages. Post implementation, the company can provide its customers with up to date information, before they face any problem, and advise them on how to improve the application.

The popularity of BMC Software's cloud suites are growing. We also believe that the popularity will encourage the company to grow its cloud exposure and capitalize on the increasing demand for cloud computing. Another cloud solution offered by BMC is Cloud Lifecycle Management.

This has been chosen by several companies in the past few months, including Thai Airways, cloud services provider Infoplex, telecom company Swisscom IT Services, JDA Software Group and Quality Technology Services, and IT outsourcing services provider CompuCom Systems Inc.

The company has been witnessing constant flow of deals over the past few quarters. However, weaker expenditure from different governments and the ongoing European economic turmoil will remain headwinds in the near term. Moreover, BMC's weak third-quarter 2013 results have led to downward estimate revisions by most of the analysts.

Currently, BMC Software has a Zacks Rank #4 (Sell). However, not all software companies are performing as badly as BMC. We would recommend investors to consider Compuware Corp. (Nasdaq: CPWR) and Symantec Corp. (Nasdaq: SYMC), which have a Zacks Rank #1 (Strong Buy). Another company, CA Inc. (Nasdaq: CA) has a Zacks Rank #2 (Buy) and also looks like a good investment at this point.

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